Reporting Stockholders' Equity Items on Statement of Cash FlowsOn the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.If an amount is not reported on the statement of cash flows, enter in "0" in the Amount column. ACCOUNT Common Stock, $40 parACCOUNT NO.BalanceDateItemDebitCreditDebitCreditJan.1Balance, 120,000 shares4,800,000Apг.230,000 shares issued for cash1,200,0006,000,000June 304,400-share stock dividend176,0006,176,000ACCOUNT Paid-In Capital in Excess of Par-Common StockHETEACCOUNT NO.BalanceDateItemDebitCreditDebitCreditJan.1Balance360,000Apг.30,000 shares issued for cash720,0001,080,000June30Stock dividend114,4001,194,400ACCOUNT Retained EarningsACCOUNT NO.BalanceDateItemDebitCreditDebitCreditJan.1.Balance2,000,000June30Stock dividend290,4001,709,600Dec.30Cash dividend463,2001,246,400Dec.31Net income1,440,0002,686,400 ItemSection of Statement of Cash FlowsAdded or DeductedAmountSale of common stockCash dividendStock dividend

There are three types of activities presented on the statement of cash flows: Operating Investing…

Answered: On the basis of the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 4MC: The retirement of long-term debt by the issuance of common stock should be presented in a statement...

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Reporting Stockholders' Equity Items on Statement of Cash Flows

On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.

If an amount is not reported on the statement of cash flows, enter in "0" in the Amount column.

ACCOUNT Common Stock, $40 par
ACCOUNT NO.
Balance
Date
Item
Debit
Credit
Debit
Credit
Jan.
1
Balance, 120,000 shares
4,800,000
Apг.
2
30,000 shares issued for cash
1,200,000
6,000,000
June 30
4,400-share stock dividend
176,000
6,176,000
ACCOUNT Paid-In Capital in Excess of Par-Common Stock
HETE
ACCOUNT NO.
Balance
Date
Item
Debit
Credit
Debit
Credit
Jan.
1
Balance
360,000
Apг.
30,000 shares issued for cash
720,000
1,080,000
June
30
Stock dividend
114,400
1,194,400
ACCOUNT Retained Earnings
ACCOUNT NO.
Balance
Date
Item
Debit
Credit
Debit
Credit
Jan.
1.
Balance
2,000,000
June
30
Stock dividend
290,400
1,709,600
Dec.
30
Cash dividend
463,200
1,246,400
Dec.
31
Net income
1,440,000
2,686,400

Item
Section of Statement of Cash Flows
Added or Deducted
Amount
Sale of common stock
Cash dividend
Stock dividend

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